In addition to the urban box and full-size venues, he said, the company is developing a mid-size facility designed for areas with populations of 500,000 or less.ĭuring the second quarter of 2019, Edens said, the company closed sales of four of its golf courses, generating $20 million.
“That allows us to go back and take our 1.0 site in Orlando, retrofit it with this technology, gaming, food and beverage,” Edens said. “We want to be smart about our site selection, we want to compress the construction time line and be on or below budget, and we want to shorten the time period from opening to break even.”Įdens described the three venues that opened this fall as “Generation 2.0” and said they offer improved technology and more regionalized food & beverage menus. “Our development goals are really simple,” said Khouri, who recently joined Drive Shack after holding management roles at Topgolf from 2013 to 2018. The larger facilities each cost between $25 million and $35 million and project revenues of between $15 million to $25 million annually, said David Hammarley, chief financial officer of Drive Shack. Meanwhile, a full-size facility can take a couple of years to get up and running.ĭrive Shack President Hana Khouri said during the conference call that each urban box will cost between $5 million and $8 million, about one-third the cost of a fullsize venue, and will generate about $8 million in revenue annually. That compares to the 60,000 square feet of the company’s first facility in Orlando, Fla., which opened in 2018, and the three recently opened venues, which are about 65,000 square feet each.Įdens said the smaller venues are easier to permit and build and can take as little as nine months from identification of a site to opening. In an August conference call with investors, Drive Shack chairman Wes Edens said the urban box venues will range in size from 15,000 to 25,000 square feet. Those are located in Raleigh, N.C., Richmond, Va., and West Palm Beach, Fla. The concept will debut in 2020, following on the heels of the company’s opening of three larger venues this year. The stores, envisioned in as many as 100 markets across the country, will be in densely populated, urban locations.
#DRIVE SHACK SERIES#
November/December 2019 News: Drive Shack introduces new golf entertainment conceptĭrive Shack Inc., the parent company of American Golf Corp., is planning to open a series of small indoor golf entertainment facilities under a new format that officials call an “urban box.”
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